The housing market has seen record growth in the midst of the pandemic, with home prices and sales continuing to rise. Despite a global economic slowdown, the housing market has remained strong in many parts of the country.
The National Association of Realtors reported that existing home sales in the US rose by 24.7% in August 2020, compared to the same month last year. This is the largest year-over-year increase since the organization began tracking sales data in 1968. The median existing home price also rose by 13.4%, to $310,600.
The demand for housing has been driven by historically low mortgage rates, which have made it easier for people to buy a home. According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage was 2.86% in September 2020. This is the lowest rate since the organization began tracking mortgage rates in 1971.
The low mortgage rates have also made it easier for people to refinance their existing mortgages. Refinancing applications have risen by more than 50% since the start of the pandemic. This has allowed many homeowners to lower their monthly payments and save money.
The strong housing market has been a bright spot in an otherwise gloomy economic picture. The pandemic has caused unprecedented levels of unemployment, which has put a strain on many households. The housing market has provided some relief, as it has been a source of income for many people.
Real estate agents, builders, and other housing-related businesses have also benefited from the strong housing market. The demand for housing has created more jobs and helped to keep the economy afloat.
The housing market is likely to remain strong in the coming months, as long as mortgage rates remain low and the economy continues to recover. The demand for housing is likely to remain high, as people look for more space and amenities in the midst of the pandemic.